The South Asia Subregional Economic Cooperation Customs Reform and Modernization for Trade Facilitation Program will contribute to Nepal''s national goals of promoting and diversifying exports, and help the country fulfill its commitments to the Trade Facilitation Agreement of the World Trade Organization and related international standards on customs. The Government of Nepal has requested a concessional loan in various currencies equivalent to SDR15,341,000 ($21 million) from ADB''s ordinary capital resources to help finance the program, together with a technical assistance grant of $1 million.
|Project Name||South Asia Subregional Economic Cooperation Customs Reform and Modernization for Trade Facilitation|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Industry and trade / Industry and trade sector development - Trade and services
|Gender Equity and Mainstreaming||No gender elements|
|Description||The South Asia Subregional Economic Cooperation Customs Reform and Modernization for Trade Facilitation Program will contribute to Nepal''s national goals of promoting and diversifying exports, and help the country fulfill its commitments to the Trade Facilitation Agreement of the World Trade Organization and related international standards on customs. The Government of Nepal has requested a concessional loan in various currencies equivalent to SDR15,341,000 ($21 million) from ADB''s ordinary capital resources to help finance the program, together with a technical assistance grant of $1 million.|
|Project Rationale and Linkage to Country/Regional Strategy||The transaction technical assistance is needed to help strengthen Nepal's Department of Customs'' capacity to execute reform measures captured in the policy matrix of the program, which are in turn the strategic priorities of the 4-year national strategy, the Customs Reform and Modernization Strategies and Action Plan (CRMSAP) 2017 -2021, with which the program is fully aligned. The TA and the policy-based loan are both included in the Country Operations Business Plan: Nepal, 2017-2019 and the Regional Cooperation Operation Business Plan: South Asia, 2016- 2018.|
|Description of Outcome|
|Progress Toward Outcome||TA has become effective on 15 August 2017.|
|Description of Project Outputs|
|Status of Implementation Progress (Outputs, Activities, and Issues)||Three individual national consultants have been engaged to support the implementation of TA activities. Preparatory activities for the engagement of a national consulting firm have also started.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The stakeholders are trade-related public and private sector entities, represented in the Customs National Trade Facilitation Committee (CNTFC), including: Ministry of Finance, Department of Customs, Customs field offices, other trade-related government ministries (Ministry of Commerce, Ministry of Agricultural Development, Ministry of Industry), banks, manufacturers, producers of agricultural goods, traders, freight forwarders, customs agents, among others. Consultation sessions have been held continuously in Kathmandu and the field locations since 2014. At the field locations, local chambers of commerce, manufactures, cooperatives, customs clearing agents, and freight forwarders were visited in addition to local government offices. Following the initial consultation, a number of stakeholder consultations have been held as part of the project review missions of TA 8442 at an interval of 4-6 months. In November 2016, a national consultation session workshop was organized, inviting these public and private sector representatives. While the workshop's primary aim was to discuss the draft Customs Reform and Modernization Strategies and Action Plan (CRMSAP), 2017-2021, the agenda included discussions on the CRMSAP reform areas to be supported by ADB's policy-based lending. Major reform actions to be supported by the Program were confirmed, together with endorsement of the CRMSAP design.|
|During Project Implementation||
The TA will be implemented over 30 months starting August 2017. The executing agency will be the Department of Customs (DOC). The TA's implementation mechanism will be the same as the policy-based lending program, with which TA is associated with. The program steering committee, chaired by the Director General of the DOC, will be formed to guide and monitor implementation. Members will be drawn from the Ministry of Finance, Ministry of Commerce, Department of Industry, and the DOC. Members of the CNTFC and ADB may be invited to the steering committee meetings. The steering committee will present the progress and discuss issues on program implementation at regular CNTFC meetings. The DOC will form a program implementation framework, headed by its Deputy Director General (Management), supervising five thematic task forces of: (i) coordination; (ii) legislation; (iii) automation; (iv) risk management; and (v) organization and development.
The loan agreement for this program was signed on 10 September 2017 in Nepal and the loan effectiveness was declared on 26 September 2017. The Tranche 1 was disbursed on 10 November 2018. The Tranche 2 is scheduled to be disbursed in 2019.
|Consulting Services||A combination of individual consultants and a consulting firm will be engaged for the implementation of the technical assistance. Individual consultants will be engaged by the Asian Development Bank (ADB) using individual consultant selection and, where relevant, on output-based partial lump-sum contracts. For the development of the Nepal Customs Automation System sub-systems, a national consulting firm will provide a team of consultants. The firm will be engaged by ADB using quality- and cost-based selection method and output-based partial lump-sum contract. The firm should specialize in information technology.|
|Responsible ADB Officer||Hayashi, Tadateru|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Regional Cooperation and Operations Coordination Div, SARD|
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines Department of Customs
Tripureshwar, Kathmandu, Nepal
|Approval||24 Jul 2017|
|Last Review Mission||-|
|Last PDS Update||13 Mar 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|24 Jul 2017||15 Aug 2017||15 Aug 2017||29 Feb 2020||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||1,000,000.00||0.00||0.00||0.00||0.00||1,000,000.00||24 Jul 2017||67,674.50|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|South Asia Subregional Economic Cooperation Customs Reform and Modernization for Trade Facilitation : Project Data Sheet (Nepali Translation)||Translated PDS||Sep 2017|
|South Asia Subregional Economic Cooperation Customs Reform and Modernization for Trade Facilitation: Technical Assistance Report||Technical Assistance Reports||Jul 2017|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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|Tender Title||Type||Status||Posting Date||Deadline|
|E-Customs Specialist||Individual - Consulting||Closed||03 Jan 2018||09 Jan 2018|
|National Web Administrator - Customs Automation Assistant||Individual - Consulting||Closed||18 Aug 2017||24 Aug 2017|
|Trade Facilitation Specialist - Customs Automation Specialist||Individual - Consulting||Closed||18 Aug 2017||24 Aug 2017|
|National Web Administrator - System Administrator||Individual - Consulting||Closed||18 Aug 2017||24 Aug 2017|
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